SpiritSwap Community Vote Approves Move to Power
SpiritSwap, a decentralized exchange (DEX) on Fantom, will no longer shut down in September as previously announced. The exchange faced a crisis after its treasury funds became stuck in the troubled cross-chain protocol Multichain. However, in a community vote held on August 16th, SpiritSwap users passed a resolution to transfer the project to Power, a fellow nonfungible token platform and DEX also based on Fantom.
Power Provides Financial Backing to Revive SpiritSwap
As part of the agreement, Power has committed to deploying 200,000 USD Coin (USDC) into the SpiritSwap treasury. The generous financial injection from Power will cover the essential costs of SpiritSwap and ensure its continued operation. In a statement, Nzaru, head manager at SpiritSwap, expressed his gratitude to the Power team, saying, "Initially, I had requested a deposit of 20-30K to the treasury, but the Power team is willing to go above and beyond by depositing 200,000 USDC." The funds will be used to sustain the exchange and support its future growth.
Power Developers Vow to Benefit SpiritSwap Community
Power developers have voiced their commitment to the success of SpiritSwap. They expressed confidence in their ability to effectively manage and enhance the exchange. In a statement made prior to the acquisition, Power developers said, "We have the means and the desire to inherit SpiritSwap. This would be a direct benefit to the PNFT holders, the POWER community, and the SpiritSwap community." Their takeover will bring stability and new opportunities for both Power and SpiritSwap users.
The Multichain Fiasco and its Impact on SpiritSwap
SpiritSwap's precarious situation arose from the Multichain exploit, which drained its entire treasury. Multichain, a cross-chain protocol, faced its own troubles when its co-founder and CEO, Zhanojung He, was arrested by Chinese police in May. He allegedly held all access to Multichain private keys and servers when he was detained. Following his arrest, funds belonging to Multichain and its users were converted into stablecoins and private coins and transferred out of the protocol. While Power also suffered losses in the Multichain fiasco, its treasury assets were not affected as they were not bridged to Multichain.
The fate of SpiritSwap seemed uncertain until Power's intervention, which has given the DEX a new lease of life. With the financial backing and expertise of Power, SpiritSwap can now continue to provide its users with decentralized trading on the Fantom network.
